Is my spouse entitled to half my business after a divorce?
When facing a divorce, the fate of your business can be a significant concern. The division of property, including business assets, depends on whether the business falls under the category of marital or separate property. Understanding this distinction is crucial in determining what happens to your business.
Marital vs. separate property
In many states, the court considers assets gained during the marriage as marital property. This could include your business. However, they could view a business as separate property if it started before the marriage or was separate from marital funds. If your spouse contributed to the business or you used marital funds to grow it, the court might decide it’s subject to division.
Valuing the business
In a divorce, the court will need to determine the value of your business to decide how much of it your spouse is entitled to. The court will look at various factors when deciding how to divide a business:
- The length of the marriage
- Each spouse’s contributions
- The financial situation of both parties
The court may also consider the involvement of the non-owning spouse in the business and whether that spouse contributed to its growth. Depending on these factors, the court could decide to divide the business or award other assets to balance the division.
Equitable distribution
Your spouse may not get half of your business. Ohio’s equitable distribution laws mean the court will divide marital property fairly but not necessarily equally. The court may award your spouse a percentage of the business’s value or offer other assets to balance the division.
Understanding your business rights
Navigating the division of a business during high-asset divorce can be complex, and understanding your options is key. By staying informed about how divorce may affect your business, you can better prepare for the future and protect your interests. Taking the right steps now can help ensure a smoother transition during this challenging time.
